Corn futures are called 2 cents higher. Overnight trade at 6:30 am CST was 2 to 2 1/4 cents higher. Technical strength and bullish momentum is expected to push prices slightly higher on the open. Index fund portfolio rebalancing this week is expected to be a supportive factor for corn. However, gains could be limited by strength in the dollar and weakness in Dow Jones futures overnight. Crude oil trade could influence corn trade, although prices were down only slightly overnight. Sluggish export demand will also be a limiting factor.
Soybean futures are called steady to 1 cent higher. Overnight trade at 6:30 am CST was 1/4 to 3/4 of a cent higher. Futures traded slightly higher overnight on technical buying and bullish momentum. However, gains will be limited light strength in the dollar overnight. Export demand has been strong, but there has been some concern about possible cancellations on previous purchases by China. Early soybean harvest reports from northern Brazil show good yields.
Wheat futures are called 1 to 2 cents higher. Overnight trade at 6:30 am CST was 3/4 to 2 1/2 cents higher at the CBOT, 1 3/4 cents higher at the KCBT and 1 3/4 cents higher at the KCBT. Fund buying on anticipation of index fund support this week due to portfolio rebalancing is supporting futures. The idea that wheat acreage will be down this year is an underlying bullish factor. However, gains will be limited by light strength in the dollar overnight and sluggish export demand.
Cattle futures are called steady to higher. Follow-through buying from the rally on Tuesday and the ability of futures to push above some technical resistance will be supportive. Cash trade is expected to be firm this week and cold/wintery weather will hamper feedlot performance. However, gains will be limited by concern about beef demand. Boxed beef prices were down slightly on Tuesday and boxed beef supplies are said to be moderate to heavy.
Lean hog futures are called steady to higher. Strength in the cash market has helped support the futures market. Cold temperatures have limited marketings while packers have returned to a full slaughter schedules this week. However, gains will be limited by tightening packer margins that could limit further strength in the cash market.